[May 12, 2004] IP PBXs Represent Strong Growth Opportunity in Otherwise Mature PBX Market Although the market for Private Branch eXchange (PBX) systems is generally considered to be mature and, consequently, slow growing, there is a significant transformation of the underlying technology taking place that is creating new opportunities for vendors to rapidly grow revenue, reports In-Stat/MDR (http://www.instat.com). A recent report from the high-tech market research firm finds that this transformation is a result of a shift away from digital, circuit-switched voice communications toward a convergence of voice and data communications networks, signified by the use of Internet Protocol (IP) and packet switching as the underlying communications technology. Consequently, while the growth of the overall PBX market is tied closely to the rate of general economic growth, the replacement market comprised of IP-based systems is expected to grow much faster. "There are both cost benefits and user benefits that are driving the adoption of IP PBX systems," says Sam Lucero, an Industry Analyst with In-Stat/MDR. "Cost benefits derive from lower operational expenses and, eventually, lower capital expenditures from deploying standards-based equipment and converging voice and data networks. User benefits consist of potential productivity gains by employees using applications such as unified messaging and presence management." In-Stat/MDR has also found that: As a result of the convergence of voice and data networks, the companies selling IP PBX systems range from traditional enterprise telephony system vendors, such as Avaya and Nortel, to datacom vendors, such as Cisco and 3Com. A number of smaller, IP PBX specialty vendors, such as Shoreline Communications and Zultys, are also active in the market. The shift toward standards-based architectures is leading to a disaggregation of the IP PBX market. With customers now picking and choosing components of the voice system from multiple vendors, depending on what best fits their needs, this market is witnessing greater competition, increased innovation, and lower prices. The overall market for PBXs will grow at a 4.2% Compounded Annual Growth Rate (CAGR) between 2003 and 2008. However, while traditional PBX line shipments will decline by a 15.4% CAGR over this period, shipments of converged PBX lines are expected to grow at an 11.2% CAGR. Pure IP PBX line shipments are expected to grow even more dramatically, at a 28.9% CAGR. The report, "IP PBXs: A Market Hitting The Tipping Point" (#IN0401361CT),examines the market for IP PBXs, including an analysis of market drivers and challenges, key market trends, key vendors, 2003 vendor market shares, and 5-year forecasts of IP line shipments. To purchase this report, or formore information, please visit: http://www.instat.com/catalog/bcatalogue.asp?ID=18 or contact Courtney McEuen at 281-246-4668; [email protected] report is priced at $2,995.00 U.S. Dollars. [ Back To TMCnet.com's Homepage ]